Goods and Services Tax (GST) is one of the most important tax reforms in India. Every business registered under GST must comply with various rules such as filing GST returns, maintaining proper records, and paying taxes on time. However, sometimes businesses receive a GST notice from the tax department due to errors, mismatches, or non-compliance. Understanding what a GST notice is, why it is issued, and how to respond properly is crucial to avoid penalties and legal issues. This guide explains everything about GST notices, their types, time limits, and how to reply effectively.
What is a GST Notice?
A GST notice is an official communication sent by the GST department to a taxpayer. It is issued when the department finds discrepancies, non-compliance, or irregularities in GST returns, registration, or tax payments. The notice may ask for clarification, additional documents, or payment of tax, interest, or penalty. Ignoring a GST notice can lead to serious consequences such as cancellation of GST registration, penalties, or even legal action.
Common Reasons for Receiving a GST Notice
- Mismatch in GST Returns – Differences between GSTR-1 (sales return) and GSTR-3B (summary return) or between GSTR-2A and GSTR-3B.
- Non-filing of GST Returns – Failure to file monthly, quarterly, or annual GST returns within the due date.
- Incorrect Input Tax Credit (ITC) – Claiming ITC on ineligible goods or services or claiming excess ITC.
- GST Registration Issues – Using an invalid GSTIN, not updating business details, or operating without registration.
- Tax Evasion or Fraudulent Activity – Underreporting sales, issuing fake invoices, or suppressing turnover.
- Late Payment of GST – Delay in paying GST liability after filing returns.
- Audit or Scrutiny – Random selection for audit or scrutiny by the GST department.
Types of GST Notices
The GST department issues different types of notices depending on the nature of the issue. Below are the most common types:
1. Notice under Section 46 – Non-filing of Returns
If a registered taxpayer fails to file GST returns (GSTR-1, GSTR-3B, or GSTR-9), the department issues a notice under Section 46. The taxpayer must file the pending returns within 15 days.
2. Notice under Section 50 – Interest on Late Payment
When GST is paid after the due date, interest is charged under Section 50. The notice demands payment of interest along with the tax amount.
3. Notice under Section 61 – Scrutiny of Returns
This notice is issued when the department finds discrepancies in the returns filed. The taxpayer must explain or correct the errors within the specified time.
4. Notice under Section 73 – Non-payment or Short Payment (Without Fraud)
If tax is not paid or short paid due to an unintentional error, a notice under Section 73 is issued. The taxpayer can pay the tax along with interest before the notice is issued to avoid penalties.
5. Notice under Section 74 – Non-payment or Short Payment (With Fraud)
This notice is issued when tax evasion or fraud is suspected. The penalties under this section are higher compared to Section 73.
6. Notice under Section 67 – Inspection, Search, and Seizure
If the department suspects tax evasion, it can conduct an inspection or search under Section 67. The taxpayer must cooperate and provide all required documents.
7. Notice under Section 65 – Audit by Tax Authorities
The department may conduct an audit of the taxpayer’s records. The taxpayer must provide all necessary documents and explanations.
8. Notice under Section 62 – Assessment of Non-filers
If a taxpayer fails to file returns even after receiving a notice under Section 46, the department can assess the tax liability based on available information.
Time Limit for GST Notices
| Type of Notice | Section | Time Limit for Issuance | Time Limit for Reply |
| Non-filing of Returns | Section 46 | Anytime after due date | 15 Days |
| Scrutiny of Returns | Section 61 | Within 3 years from filing date | 15-30 Days |
| Non-payment (Without Fraud) | Section 73 | Within 3 years from due date | 30 Days |
| Non-payment (With Fraud) | Section 74 | Within 5 years from due date | 30 Days |
| Audit Notice | Section 65 | Anytime | As specified in notice |
| Inspection/Search | Section 67 | Anytime | Immediate cooperation |
How to Reply to a GST Notice
Replying to a GST notice correctly and on time is essential to avoid penalties. Follow these steps to handle a GST notice effectively:
1. Read the Notice Carefully
Check the section under which the notice is issued, the reason for issuance, and the deadline for reply. Each notice has a unique reference number and specific instructions.
2. Verify the Details
Cross-check the details mentioned in the notice with your GST returns, invoices, and records. Identify any mismatches or errors.
3. Collect Supporting Documents
Gather all relevant documents such as invoices, purchase bills, payment proofs, and return filings to support your reply.
4. Draft a Proper Reply
Prepare a professional and factual reply addressing each point raised in the notice. Avoid emotional or irrelevant statements.
5. Submit the Reply Online
Log in to the GST portal (www.gst.gov.in), go to the “Services” section, and select “User Services” → “View Notices and Orders.” Upload your reply and supporting documents.
6. Follow Up
After submission, monitor the status of your reply on the GST portal. If required, attend hearings or provide additional information.
Consequences of Ignoring a GST Notice
- Heavy penalties and interest on unpaid tax
- Suspension or cancellation of GST registration
- Blocking of Input Tax Credit (ITC)
- Legal proceedings or prosecution
- Seizure of goods or bank accounts
How to Avoid Receiving GST Notices
Prevention is always better than cure. Follow these best practices to avoid receiving GST notices:
- File all GST returns (GSTR-1, GSTR-3B, GSTR-9) on time.
- Reconcile GSTR-2A/2B with purchase records regularly.
- Claim Input Tax Credit only on eligible goods and services.
- Maintain accurate invoices and records.
- Pay GST liability before the due date.
- Keep GST registration details updated.
- Conduct periodic GST audits with professional help.
Need Help for GST Notice Handling?
Dealing with a GST notice can be stressful and time-consuming, especially for small businesses. Professional assistance ensures accurate replies and timely compliance. Startup Manager is the best choice for handling GST notices, GST registration, GST return filing, and all types of GST compliance in india. Our team of experienced Chartered Accountants and tax experts provides end-to-end support — from analyzing the notice to drafting replies and representing before authorities. For expert help with GST notices, contact Startup Manager today:
Email: info@startupmanager.in
Phone: 9013318952
Website: www.startupmanager.in
Conclusion
A GST notice is not always a cause for panic, but it must be handled carefully and within the given time frame. Understanding the type of notice, reasons behind it, and the correct way to respond can save a business from penalties and legal trouble. Whether it’s a notice for non-filing, mismatch, or scrutiny, professional guidance ensures smooth resolution. For reliable and affordable GST notice handling, Startup Manager is the trusted partner for businesses across Delhi NCR.
